When selecting an ERP system, the challenges a company faces are numerous and the downsides can be disastrous. That’s why it’s 100%, absolutely critical to start the selection process out on the right foot. We’ve created a 5 step process that covers the most important parts of deciding on an ERP system for your company.
How to Make the Right ERP Decisions
Step 1: Recognize the Cost Savings
First, it all starts with recognizing that there are significant cost savings with choosing an ERP system when implemented correctly. If you go into the process thinking that an ERP system is going to be a money pit that will cause more operation problems than it will solve, you’re setting your company up for a self-fulling prophecy. There are REAL benefits to centralizing processes and there are MASSIVE cost savings to be had. We’ve seen it time and time again with clients.
Step 2: Identify the Opportunities
Next, you need to identify the opportunities in your company that would see the greatest benefit from an ERP system. If your company has warehousing and shipping needs, an ERP system can increase on-time deliveries. More on-time deliveries mean more repeat customers. More business means your growing your bottom line.
Step 3: Take Your Time While Selecting a System and Partner
The most critical step is to take your time selecting an ERP system AND selecting an implementation partner. A true partner should be a fountain of information when it comes to similar implementations but, better yet, they should know that no two implementations are the same. ERP systems can be customized for each business depending on the needs and opportunities identified in the earlier steps.
Most Importantly: Don’t Rush This Step
Choosing your ERP system and Partner shouldn’t be rushed. Take your time since an ERP implementation is a big undertaking. You want to make sure your goals align with that of the big choices you are making. An astounding 33% of decision-makers in 2013 didn’t demo an ERP system before buying it. Don’t be one of those statistics.
Step 4: Know How to Avoid a Failed Implementation
After the selection process, it’s time to know how to avoid a failed implementation. 40 to 80% of implementations fail.
> Why Do That Many ERP Implementations Fail?
It’s due to companies lacking clear goals, selecting the wrong partner/system and a litany of other things. If you are struggling to identify some weak points before implementation begins, consult your partner or find another partner to assist. If you’ve taken your time in Step 3, you should have a clearer path to success.
Step 5: Understand Where the Future of ERP is Going
Right before pulling the trigger, it’s important to know where the future of ERP is going. The trend is going to more “modern” with ERP systems.
> What is a “Modern” ERP System?
It means an ERP system that is flexible to the systems and devices used in the world today. You’ll want a system that can operate on desktops, laptops, on-premise, off-premise and on smartphones/tablets. While you should be aware by this step, see if you can move any of your ERP systems into the cloud for “future proofing” your system.
